Pinterest Settles Lawsuit Alleging Racial and Gender Discrimination
According to NBC News, Pinterest settled a lawsuit filed against it by shareholders who claimed that the company's workplace discrimination against women and racial minorities damaged its reputation. The company will release former employees from confidentiality agreements.
According to NBC News, Pinterest settled a lawsuit filed against it by shareholders who claimed that the company's workplace discrimination against women and racial minorities damaged its reputation. In addition, the company reportedly agreed to spend $ 50 million to improve its diversity and fairness and allow former employees to speak out about the racial or gender discrimination they experienced, even if a nondisclosure agreement bound them. No other financial details were disclosed about the deal.
The lawsuit was filed against company executives in November 2020. The shareholder claimed that the company was acting irresponsibly by doing nothing to address "widespread claims of racial and gender discrimination." The complaint also accused the CEO of the company of "surrounding himself with yes-men and marginalizing women who dared to challenge Pinterest's White, male leadership clique."
That year, several women reported that Pinterest paid them less than male employees, with some reporting racial discrimination and retaliation for speaking out. The Verge also reported discrimination within the company's finance team. Separately, the company paid its former COO Françoise Brougher $ 20 million after she alleged the company paid her less than her male colleagues, did not invite her to essential meetings, and fired her after he raised the issues.
Brougher's attorney noted at the time that the settlements could help companies avoid actual liability, even though they can result in larger payments and charitable donations. (Pinterest and Brougher agreed to jointly donate more than $ 2 million to charities that support women and minorities in technology.)